Reference no: EM131324637
THE DIVISION OF INVESTMENT BANKING FEES IN A SYNDICATE
You are the lead underwriter among a syndicate of five investment banks composed of yourself, the syndicate co-manager, and syndicate members 3, 4, and 5. Your syndicate finds a deal worth $100 million in fees. You must submit a proposal as to how the fees should be divided, and the syndicate then votes by majority rule. Your syndicate is rational and democratic in the sense that the division of fees will be decided based upon maximization of absolute gain in this single deal, and the members also have reputational reasons in future deals (where the lower-ranked members hope to achieve more influence and get a higher-ranked position) to abide by a majority decision. If your proposal is rejected by vote of the syndicate, you are displaced as lead underwriter, removed altogether from the deal making, and replaced by the co-manager who then makes a proposal to the remaining four. If his deal is rejected, he too is removed, and syndicate member 3 makes a proposal to the three firms remaining, and so on.
Questions
1. What should you as the lead underwriter offer and to whom? [Hint: Employ the methods of sequential game reasoning. Start at the endgame and work backward.]
2. Is there anything unusual about the divison of these fees across the syndicate?
3. Why would any investment bank volunteer to be a syndicate co-manager?
Provide the feedback on the given personal statement
: Provide the feedback on the given Personal statement. - If you haven't had experience in the field, consider including experience in the classroom.
|
Where do you see business intelligence ten years from
: Where do you see Business Intelligence and related technology 5 or 10 years from? What new technologies are being developed in the computer industry and how can those technologies be utilized for business and process analysis?
|
Lipid soluble hormone and a protein hormone
: What are the primary differences between a steroid/lipid soluble hormone and a protein hormone?
|
Prepare a brief powerpoint presentation
: You will also be required to prepare a brief PowerPoint presentation between 6 to 10 slides - Consider presenting information in charts, graphs, and/or tables to make your presentation easier to read by an audience.
|
What should you as the lead underwriter offer and to whom
: What should you as the lead underwriter offer and to whom? [Hint: Employ the methods of sequential game reasoning. Start at the endgame and work backward.]
|
Research - women in early christianity
: RESEARCH: WOMEN IN EARLY CHRISTIANITY. Find and read 3 scholarly sources (not including material assigned for class), print or online material. Use the Search Engine from NDNU Library (EBSCO Academic Search Elite) to find peer-reviewed articles fr..
|
Transfect the growth hormone receptor dna
: a) Describe how you would transfect the growth hormone receptor DNA into your cells to create stable cell lines, and include a description of the benefits of using stable cell lines versus transiently transfected cell line. b) Describe how you woul..
|
Are borders’ fixed assets fully redeployable
: Borders Books, the leading chain of bookshop retailers, entered into an agreement with Amazon.com, the online retailer, to fulfill Internet orders from the Borders.com Web site. Using Table 15.3 and the following questions, what organizational for..
|
Explain how sloans negative retained earnings balance
: Explain how Sloans negative retained earnings balance is reflected in the consolidated balance sheet immediately following the acquisition.
|